Delta May Save Pension Plan

Delta Air Lines might still attract the private investment needed to exit bankruptcy even if it holds onto its expensive, non-union pension plan, Gerald Grinstein the airline's chief executive officer, told reporters at a Capitol Hill news conference on Wednesday. Grinstein said Delta would maintain the plan covering 91,000 non-union workers and retirees if Congress approves pension legislation within the next few weeks allowing airlines to stretch their contribution schedules. Delta still will terminate its plan covering pilots mainly because of an expensive option that allows for lump sum payments. Total pension liabilities for Delta exceed $6 billion. Appearing with Grinstein to lobby lawmakers for pension reform was Northwest Airlines chief executive Douglas Steenland; he said Northwest would likely try to terminate its three employee pension plans in bankruptcy if the final Congressional bill did not meet its expectations. Northwest's pension deficit is more than $3.5 billion. Both companies, who would like to leave Chapter 11 behind by next year, also said terminating pensions would probably extend their stay in Chapter 11. A small group of U.S. House of Representative and Senate negotiators agreed in principle Wednesday on a final version of legislation to strengthen traditional employer pension plans, lawmakers report. Northwest and Delta are insisting on 20 years to close their pension funding gaps, up from the typical corporate allowance of seven. But there were no guarantees whether that timetable would still avert termination of the airline's plans to save money.

FREE Virtual Event

Pivoting Back to Travel: Phase 4

Are you prepared to guide your clients through the “new normal” of travel? Join us December 15, 2020 from 1pm-2:20pm EST for Pivoting Back to Travel: Phase 4. The upcoming installment of our FREE virtual series will feature presentations from the Cayman Islands, Dominican Republic, and Seabourn on their most up-to-date travel procedures, health & safety protocols they’ve implemented to keep guests safe, activities that are open to visitors, what your clients need to know while on their trip and more! Visit www.pivotingbacktotravel to view the full agenda and register for your FREE pass.
Read more on:

Suggested Articles:

Rocky Mountaineer's first route in the United States will be a two-day rail journey between Denver, CO,  and Moab, UT. Read more here.

South Africa announced this week the country is now open to all international travelers. Here's what you need to know.

The F.A.A. has rescinded its Emergency Order of Probation on the Boeing 737 Max, meaning carriers can receive the proper certificates to fly again.